What is the liability for the outstanding premiums at year-end?* a. 2,000,000b. 562,500c. 2,250,000d. 500,000 Sisiw Company offers a pottery bowl if they send four boxtopsfrom its products and Php5. Sisiw Company estimated that 50%of the boxtops will be redeemed. During the current year,the entity sold 800,000 boxes and customers redeemed 350,000boxtops. The cost of each bowl is Php30 plus a distributioncost of Php15.

Warranty is a form of assurance being provided by seller to the buyer that in case product will have…

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What is the liability for the outstanding premiums at year-end?* a. 2,000,000 b. 562,500 c. 2,250,000 d. 500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

What is the liability for the outstanding premiums at year-end?*

a. 2,000,000

b. 562,500

c. 2,250,000

d. 500,000

Sisiw Company offers a pottery bowl if they send four boxtops
from its products and Php5. Sisiw Company estimated that 50%
of the boxtops will be redeemed. During the current year,
the entity sold 800,000 boxes and customers redeemed 350,000
boxtops. The cost of each bowl is Php30 plus a distribution
cost of Php15.

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